ZEW Economist Friedrich Heinemann on Federal Tax Revenue Estimates

German Finance Minister Christian Lindner has presented the results of the spring tax revenue estimates, developed by the Working Party on Tax Revenue Estimates for the years 2024 to 2028. Friedrich Heinemann, head of the Research Unit “Corporate Taxation and Public Finance” at ZEW Mannheim and professor at Heidelberg University, has commented on this matter:

“The gap between what policymakers want to spend and the tax revenues available will now widen rapidly. Gone are the days when conflicts of interest were masked by low interest rates and ever-increasing employment. The government, as well as the German public, are still stuck in financial denial. Current social policies are no longer sustainable in terms of retirement, care, health and basic income. The coalition government may scrape through until the election year 2025, but after that a reality check is inevitable. Then it will be necessary to implement benefit cuts, tax increases and concerted efforts to improve the efficiency of public spending. The structurally rising deficits can no longer be ignored.”